Deep thinking: has the brand relied heavily on youth?

Deep thinking: has the brand relied heavily on youth?

Many people born in the 1980s will find a phenomenon. Back when they were around 20 years old, GUCCI, LV and other luxury brands were all the symbols of aunts and uncles in our hearts.
We young people will not choose these brands. Apart from the price factor, we think they are the brands of adults. However, today’s luxury consumers have become all young people.
Has been heavily dependent on young people
This is why most people attribute it to Gucci’s youthful transformation in recent years, attracting a large number of young consumers.
Gucci’s performance in the past few years has increased more than 20% to 40%, and led the cloud group, the performance for the first time exceeded 8 billion euros to create a history, profit is as high as 3.3 billion euros…
As an old saying goes in China, when things go too far, things will go wrong. When the brand is getting younger, has Gucci become heavily dependent on the younger generation? And the answer is yes, it does. Is that a bad thing?
Gain when young
Want to analyze the good or bad of this matter, want to divide a few Angle to see.
From the perspective of brand operation, Gucci has been in negative growth state for two consecutive years since 2013. By the first quarter of 2015, its performance became the worst in the last five years, which forced Gucci to carry out a high-level turnover in this year.
At the same time, Gucci has become a young team to discuss various aspects of brand operation from the perspective of young people and help senior management make decisions.
By 2016, when the growth of the whole luxury industry was almost stagnant with only 1%, Gucci’s performance growth was 3.1%. Louis Vuitton, Burberry and other brands were either stagnant or regressive.
Over the next few years, the Gucci brand has been Kering’s main driver of growth, with sales up by a third and operating profit up 54% last year.
Being young also has anxiety
Where is anxiety? According to the luxury consumption data provided by tencent data lab, 68% of luxury consumers are now between 18 and 30 years old. Think about whether they will still love Gucci so much in 10 years.
63% of these consumers are college students who have not established their own main income channels, and their spending power mainly comes from parents’ assistance, scholarships and part-time jobs.
We have reasons to believe that these people will certainly not look like this after entering a new environment in a few years, and no one knows what will be like after 10 or 20, so from this perspective, Gucci and other brands are anxious.
Younger and younger
Summing up Gucci’s success rule, in fact, is not the transformation of young people, because it has no transformation. Only Gucci integrates luxury goods with street, and satisfies young consumers with popular logo operation strategy.
So when it comes to the younger brand, we must distinguish the younger and popular logo. This reminds me of an article I saw a few days ago, written by e jianhua of time interest, “do brand youth, or do you want to be a brand for young people?”
In my opinion, this problem is actually the difference between the two concepts of youth and popular logo.
Younger brand is the transformation of brand restructuring, brand new start will be broken bones, and popular logo is the brand to meet young consumers strategy.
Brands do not always need to be younger, because this risk is very big, which means you may lose the original brand foundation, also may lose the original consumer group.
For example, li ning put forward the “after 90 li ning” directly new positioning, a sense of survival, ultimately failed, and now why li ning seems to be successful?
Pleasing doesn’t mean giving up
To understand this, look at uniqlo. In uniqlo stores, you can see the younger generation as well as the older generation.
Uniqlo became an age-neutral brand in the eyes of consumers.
As is known to all, uniqlo is a lifestyle brand oriented to make comfort. The functionality and comfort of products come first, while it is obviously not enough to attract young consumers with comfort.
Use the popular logo strategy, uniqlo’s annual UT collection is the best proof of that, with famous designers in charge, creating products and experiences that young people love with a focus on branding, fun and topics.
Not only did not lose the original old-school consumers, but also a large number of young consumers patronize.
The younger age of the brand does not necessarily need to completely abandon the historical tone of the brand to please the young people, only need popular logo strategy means, such as li ning’s China li ning, uniqlo’s UT series…
Gucci has benefited from targeting young consumers aged 18-30, but 42% of consumers are still over 30.
The popular logo strategy of the brand is not the younger transformation of the brand, because they all retain the historical tone of the original brand.
Gucci is still focused on art and culture, li ning is still focused on sports technology, uniqlo is still developing comfort and function, but everyone is looking for popular logo strategies to maximize the appeal of the younger generation.

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